Large firms late repayment hitting small companies
Aug 16 2007
SMEs are being put in jeopardy because larger firms are 'dragging their feet' with payments, new research suggests.
According to the Forum of Private Business (FPB), around 75 per cent of small firms are suffering with cash flow problems because they are awaiting payment from their larger counterparts.
The FPB has called on the Office of Fair Trading (OFT) to tackle this problem by allowing SMEs to bring a complaint directly to the OFT or the Competition Commission.
Calling the government into action, Matt Hardman at FPB says: 'Our survey adds to a growing body of evidence that smaller business suppliers are often bullied and treated unfairly by big business.
'While most of the public sector seems to have got the message on late payment, big business is dragging its feet. The OFT needs to find a way of addressing this problem.'
The FPB has also warned small firms over their dealings with the Department for Environment, Food and Rural Affairs (Defra) with the new outbreak of foot and mouth.
It is claimed that some companies are still awaiting payments from Defra due to the last outbreak.
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